Two Proposed Crypto Laws by U.S. Congress
The House committee drafted legislation proposed on 15th of July 2019, focuses on Libra by Facebook, and primarily restricts these large technology firms from operating practices similar to financial institutions. The large technology firms implied in the draft legislation are majorly the online platform service providers who are minimum annual revenue earnings approximate to $25 billion.
In light of this understanding, the bill suggested that: “A large platform utility may not establish, maintain, or operate a digital asset that is intended to be widely used as medium of exchange, unit of account, store of value, or any other similar function, as defined by the Board of Governors of the Federal Reserve System.”
Libra Association by Facebook
Facebook’s Libra network logged over 51,000 transactions in the past two months and has also launched over 30 projects despite the loss of a quarter of its founding partners. The published press release set forth on 15th November targets the illustration of the new stablecoin features presented by Libra Association, showing the network’s continuous developments.
Despite the expected changes and incorporation of new features in the Libra Association, Chairwoman Maxine Waters of the House committee aired out her opinions on 17th July 2019 concerning the network, which were negative sentiments that suggested the Facebook tech firm to halt its plans of advancing the network.
She commented that “Facebook has proposed backing Libra tokens with government currencies and government-guaranteed securities, and holding them in a so-called Libra Reserve, to be governed by Facebook and its partners. Ownership of government assets on such a massive scale without proper oversight threatens to concentrate government influence in the hands of a few elites. Ultimately, if Facebook’s plans come to fruition, the company and its partners will wield immense economic power that could destabilize currencies and governments.”
The “Stablecoins Are Securities Act” Bill
Following the United States Congress release of the “Stablecoins Are Securities Act” draft bill in October, the legislation’s primary function is focused on stablecoins regulation, which lacks volatility. As such, the passing of the draft bill will subject the Libra Association and its networks to all laws employed in bonds and stocks.
Based on Facebook’s update of the Libra whitepaper, primary changes focus on eliminating payable dividends applied to the network investors and indulging in various Libra security classifications changes.